At the start of 2024, the BRICS group saw its membership double with the entry of four countries, namely Egypt, the UAE, Iran, and Ethiopia, alongside Saudi Arabia, which remains undecided about its position in the bloc, despite the announcement of its official accession early in 2024. While opinions vary on how beneficial this expansion will be for all members, the UAE and Iran’s entry could help align the economic strategies of countries holding significant shares of global oil production (plus vast reserves of natural gas and crude oil) with their key markets in Asia. This could also spur further investments in refining, chemical production, and marketing among BRICS members. As such, BRICS stands as a formidable economic and political force reshaping the global landscape of power and influence, fueled by its boundless resources and potential. This bloc has drawn immense global interest, spurring countries worldwide, including Turkey and others from both East and West, to seek membership.
The BRICS countries hold a pivotal role in influencing the future of global energy, as they represent major emerging economies characterized by a varied energy mix and distinct development challenges.
Currently, the BRICS group includes Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates, with an increasing number of countries expressing interest in joining, reflecting their ambition to strengthen global influence. Russia currently presides over what is now called BRICS+, following the bloc’s expansion at the beginning of 2024. The economies within BRICS have grown complementary, collectively managing vast reserves of natural gas, crude oil, minerals, and agricultural assets, alongside technology and human expertise. Additionally, the bloc now boasts a development bank and a cash reserve fund, making it an appealing source of support for developing countries in need of financial assistance.
Energy: The Prime Focus of Collaboration
The BRICS countries boast significant production capacity, accounting for nearly half of global energy, with a diverse array of sources as shown in figure 1. However, the significant reliance on specific energy sources in each country hinders their ability to ensure sustainability. To unlock their full capabilities, these countries must focus on diversifying their energy mix. In six of the BRICS countries, fossil fuels—particularly crude oil and natural gas—serve as the dominant energy source, underscoring the urgent need to phase out traditional energy sources in order to achieve a successful energy transition.
Notably, Saudi Arabia, the UAE, and Iran together account for approximately 17% of global oil production. These three countries are the primary suppliers of medium-sour crude favored by refiners in Asia. However, their market share is being challenged by Russian oil, which is sold at a significantly lower price due to the price cap mechanism imposed by the G7 countries as part of the sanctions on Russia following the Russian-Ukrainian war. Collectively, the BRICS controls about 42% of global oil production and roughly 35% of total consumption.
Following the invasion of Ukraine, the G7 countries imposed a price cap on Russian oil to curb the revenue funding Russia’s war efforts. The EU also imposed sanctions on the supply of goods and technology to Russia. These actions have led to closer cooperation among the BRICS countries, solidifying their position as a counterforce to Western policies.
China holds the largest share of energy within the BRICS countries and is heavily reliant on coal, bringing BRICS members’ share to 70% of global coal production. This reliance complicates efforts to achieve climate objectives and intensifies pressure on China to seek energy diversification. Although oil and gas are less critical than coal, they are essential to the economies of countries like Russia, Iran, and the UAE, which play a major role in global production of these two resources.
Furthermore, Brazil and Ethiopia stand out as leaders in hydropower, leveraging their ample rainfall and rugged terrains to generate significant electricity. Hydropower forms a large part of their energy mix, establishing them as exemplars in renewable energy.
Figure 1: Share of power capacity in the BRICS group
Source: Global Integrated Power Tracker
Traditional energy sources, like fossil fuels and hydropower, continue to constitute the majority of BRICS energy production, with alternative sources such as bioenergy and nuclear power still playing a minor role. China and India lead in new coal projects, solidifying BRICS as a key player in the fossil fuel market. If all ongoing projects are completed, the region will experience a substantial rise in fossil fuel production, posing challenges to global clean energy transition efforts and influencing the future of global energy dynamics.
While OPEC+ continues to oversee oil market management, the expanded BRICS group may increasingly influence energy markets over the long term. BRICS members are also aiming to boost investments in strategic metal supply chains, with Saudi Arabia making substantial investments in lithium and other minerals in Brazil.
BRICS holds approximately 72% of the world’s rare earth elements, 75% of its manganese, 50% of its graphite, 28% of its nickel, and 10% of its copper, solidifying its position in the global renewable energy sector. This contrasts with the G7, whose reserves are nearly 30 times smaller, highlighting BRICS’ strategic resource strength.
Key Aspects of BRICS Renewable Energy Collaboration
BRICS countries are undergoing a bold transition towards renewable energy, with wind and solar projects currently under development outnumbering fossil fuel projects by more than two to one. This shift highlights the group’s commitment to a sustainable economy and reducing reliance on fossil fuels. Solar photovoltaic energy, in particular, represents the largest portion of renewable energy projects in the group, as illustrated in figure 2. While China leads in these projects, countries like Brazil and Egypt are also making significant contributions, pointing to a bright future for solar energy in the region.
Figure 2: BRICS’ wind and utility-scale solar capacity in development is double coal, oil, and gas
Source: Global Integrated Power Tracker
Wind power is a key driver in the BRICS renewable energy sector, closely followed by solar energy, with the majority of projects located in China and Brazil. However, wind power, particularly offshore wind, faces significant regulatory hurdles that could impede its growth.
Hydropower is vital for addressing the increasing demand for electricity, while China and India are advancing bioenergy initiatives by utilizing agricultural waste. Ethiopia, meanwhile, is aiming to expand its geothermal energy sector, with plans to boost its production capacity.
While investment in fossil fuels persists, renewable energy capacity currently under construction is more than double that of fossil fuels, reflecting a shift toward a sustainable economy. BRICS countries must carefully balance renewable and fossil fuel projects to facilitate a gradual transition to a low-carbon economy.
China is solidifying its leadership in renewable energy, with clean sources now making up around 50% of its energy mix. Meanwhile, Russia and the UAE are making strides toward renewables, whereas Iran remains focused on expanding its gas-fired power plant capacity.
Tripling global renewable energy capacity by 2030 is a crucial pillar in combating climate change. While BRICS countries show varying degrees of support, their ambitious plans suggest a shared, if implicit, commitment to this target.
To reach the ambitious global target, countries worldwide must double their efforts, with BRICS countries playing a key role in driving this transformation. These countries have the potential to triple their renewable energy capacity within this timeframe, requiring an annual growth rate of roughly 16%—an increase from approximately 308 gigawatts to 749 gigawatts, as depicted in figure 3.
To reach the ambitious global target, countries worldwide must double their efforts, with BRICS countries playing a key role in driving this transformation. These countries have the potential to triple their renewable energy capacity within this timeframe, requiring an annual growth rate of roughly 16%—an increase from approximately 308 gigawatts to 749 gigawatts, as depicted in figure 3.
Figure 3: Total renewable capacity in the BRICS by 2030
Source: International Renewable Energy Agency (IRENA)
The remarkable growth in renewable energy capacity in BRICS countries in 2023, reaching approximately 331 gigawatts, aligns with the ambitious targets these countries have set for expanding renewable energy in the coming years. If this momentum continues, BRICS countries will be poised to contribute substantially to the global goal of tripling renewable energy capacity by 2030.
BRICS Nuclear Platform: Towards Stronger Nuclear Energy Partnerships
China is the leading force behind global nuclear energy growth, with approximately 118 gigawatts of nuclear capacity under construction, surpassing any other country. Combined with India, the two countries represent about 82% of the total nuclear energy projects currently in development worldwide, highlighting their critical role in shaping the future of nuclear energy.
Furthermore, nuclear companies in the BRICS’ countries have also expressed their support for the creation of a new nuclear energy cooperation platform, which was discussed during a meeting in Moscow prior to the recent summit in Kazan. The platform seeks to enhance collaboration among companies in BRICS+ countries, focusing on nuclear energy development, the exchange of best practices, and workforce training.
Overall, the nuclear energy platform aims to facilitate the exchange of expertise and foster the development of nuclear technologies among BRICS+ countries. Alexey Likhachev, Director General of Rosatom, emphasized that BRICS members are crucial to the global nuclear energy industry’s growth, urging the activation of cooperation mechanisms through this platform to promote greater integration in the sector.
By 2021, the total installed nuclear power capacity worldwide had nearly reached 400 gigawatts, accounting for approximately 10% of global electricity generation capacity. This capacity is expected to stabilize over the next two years, as illustrated in figure 4.
Figure 4: Nuclear-generated electricity production
Source: IRENA
The total operational nuclear capacity in BRICS member states currently stands at 390 gigawatts, with an additional 66 megawatts under construction. One of the platform’s key goals is to assist companies in convincing their governments, when necessary, to recognize nuclear energy as a clean energy source, as well as to address any challenges that may impede nuclear energy projects. As such, the platform’s main objective is to develop and implement best practices for both energy and non-energy applications of nuclear technologies for peaceful purposes within BRICS and BRICS+ markets, and to create incentive mechanisms and project implementation models for member states.
It’s noteworthy that while many assume Russia’s influence is limited to the global gas market, it actually extends deeply into the nuclear energy sector, where it can arguably be seen as a leading force in this strategic industry. Rosatom, Russia’s formidable nuclear energy company, secured over $140 billion in foreign contracts between 2010 and 2021. Overall, it can be argued that Moscow holds a strong grip over the global nuclear energy industry and its markets, as shown in the figure 5.
Figure 5: Russia’s dominance in the nuclear fuel market
Source: IRENA
In short, interest in joining the BRICS bloc has surged amidst worsening economic crises, which have increasingly strained governments worldwide, and as the world grapples with intensifying energy and mineral shortages. The BRICS bloc serves as a crucial force for advancing energy security, given its significant impact on energy and mineral stability. The group also unites countries rich in mineral resources, leading oil producers, and some of the fastest-growing energy consumers. Together, BRICS countries aim to establish a new energy system capable of meeting the rising global demand for energy and strategic minerals, thereby strengthening energy security.
